Liquor Sales Dip: Karnataka has witnessed a notable decline in liquor sales in the first half of the financial year, as per the latest data released by the State Excise Department.
Compared to 2023 and 2024, liquor sales in 2025 have dropped significantly, primarily due to the steep hike in excise duties on alcohol. However, despite the fall in sales volume, the department’s overall revenue collection has increased substantially.
According to officials, the state sold 352.83 lakh boxes of Indian Made Liquor (IML) between April and September 2023, while sales dropped to 345.76 lakh boxes during the same period in 2024. For the current year (April–September 2025), sales have further declined to 342.93 lakh boxes, showing a reduction of 2.83 lakh boxes compared to to the previous year.
Liquor retailers and distributors have attributed this fall to the sharp increase in excise duty imposed by the state government earlier this year. “The price rise has discouraged customers, especially in semi-urban and rural markets,” said a liquor vendor in Bengaluru.
However, officials pointed out that the higher tax rate has offset the dip in sales, keeping revenue collection strong. The situation is even worse for the beer market, which has recorded a drastic decline. Between April and September 2024, the state sold 242.73 lakh boxes of beer, each containing 7.8 liters.
During the same period in 2025, sales fell to 195.27 lakh boxes, marking a sharp drop of 47.46 lakh boxes, or 19.55 percent. Data shows that beer consumption has been falling steadily month after month.
Despite the fall in sales volume, the Excise Department’s total revenue has surged. From April to September 2024, the government earned Rs 17,702 crore in excise revenue. During the same period in 2025, collections rose to Rs 19,571 crore, a substantial increase of Rs 1,869 crore.
Analysts attribute this growth to the increase in liquor prices and excise duties, which have compensated for reduced consumption. The government’s pricing strategy, although unpopular among consumers, has helped the state achieve higher fiscal targets.
Officials also expect excise revenue to remain stable in the coming months as festive demand slightly boosts consumption, although industry experts warn that sustained price hikes could affect long-term sales trends.
In summary, while Karnataka’s liquor consumption appears to be slowing, the government’s coffers continue to grow — thanks to higher taxes and strategic pricing, ensuring that the state’s excise revenue stream remains unaffected.
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